AuGroup (SHENZHEN) Cross-Border Business (HKG:2519) said it expects net profit attributable for the six months ended June 30 to fall between 50% and 62% to about 100 million yuan to 130 million yuan from a year earlier, according to a Wednesday bourse filing.

Shares of the online retailer fell over 4% in Thursday morning trade.

The company cited higher costs from tariff policy changes, rising logistics expenses, and increased warehouse leasing costs as factors weighing on earnings.

Early-stage spending on strategic incubation projects also diluted profits.

AuGroup will release its interim results by the end of August.